Audi Crafts an Affordable RWD Car—But It’s Not for Sale

Currently, the most affordable Audi in the U.S. is the 2026 A3 compact sedan, starting around $40,000 with a 201-horsepower 4-cylinder engine driving the front wheels. Opting for an electric model bumps your budget closer to $50,000 for the Q4 E-Tron compact crossover. In China, however, buyers get noticeably more performance and features for their money—or should we say yuan.

This week, Audi began selling the fully electric E5 Sportback in China, with a starting price of just 235,900 yuan (roughly $32,500). That’s on par with a Tesla Model 3 in China, and, for comparison, about what a Toyota Camry would cost in the U.S.

Base Model Packs a Punch

The base E5 Sportback Pioneer isn’t bare-bones. It features a single rear-mounted electric motor producing 295 horsepower, enough to hit 62 mph in just 6.1 seconds. Standard equipment includes a 76-kilowatt-hour battery, which on China’s testing cycle is estimated to deliver up to 384 miles of range. Expect a lower figure under the stricter U.S. EPA testing standards.

The Audi E5 Sportback comes well-equipped even at the base level, replacing traditional side mirrors with cameras and digital screens, offering soft-close frameless doors, and featuring a fully digital dashboard that includes a screen for the front passenger. Advanced technology includes built-in LiDAR, three millimeter-wave radars, 11 cameras, and 12 ultrasonic sensors to support a range of driver-assist systems. For Chinese buyers, the car also integrates seamlessly with popular local apps and platforms, including WeChat, Alipay, and domestic navigation services.

The E5 Sportback isn’t exactly compact. At just over 192 inches in length, it surpasses the new Audi A5 Avant by more than two inches, placing it closer to midsize territory than a typical compact wagon.

Higher Trims Come at a Steeper Price

Performance-oriented buyers have several options beyond the base Pioneer model. The lineup includes the Pioneer Plus, Pioneer Quattro, and Flagship Quattro. The Pioneer Plus starts at 269,900 yuan ($37,500) and upgrades to a 402-horsepower rear electric motor, paired with a 100-kWh battery that delivers an estimated 480 miles on China’s test cycle.

The Pioneer Quattro and Flagship Quattro both feature dual-motor all-wheel drive. The Pioneer Quattro, priced the same as the Pioneer Plus, produces 518 horsepower but uses a slightly smaller 83-kWh battery. At the top of the lineup, the Flagship Quattro boasts a supercar-level 776 hp and a 100-kWh battery, capable of sprinting from 0 to 62 mph in just 3.4 seconds. Starting at 319,900 yuan ($44,500), it represents an impressive performance bargain. Audi notes on its Chinese website that these prices are part of a limited-time offer, suggesting costs may increase after the launch period.

AUDI, Not Audi

A key reason the E5 Sportback is so competitively priced is its joint development with Chinese auto giant SAIC. Audi first entered the Chinese market in 1988 and quickly became one of the country’s most popular brands with its lineup of gasoline-powered vehicles. However, it has faced challenges in gaining a foothold in China’s rapidly growing EV market, leading to its 2023 partnership with SAIC. Similarly, Volkswagen, another Volkswagen Group brand, is teaming up with China’s Xpeng to create models specifically tailored to local preferences.

Audi’s joint EV models with SAIC are sold under a distinct AUDI sub-brand, exclusive to the Chinese market. These vehicles forgo the traditional four-ring logo in favor of the AUDI name in all caps. They ride on an 800-volt dedicated EV architecture that draws heavily from SAIC’s technology, called the Advanced Digitized Platform. Audi plans to launch two additional AUDI models on this platform, including a crossover in 2026 and a large sedan in 2027.

The E5 Sportback is currently being produced at a plant jointly operated by Audi and SAIC, with customer deliveries expected to start in September.